City Council passes incentives ordinance
By Melissa Rollins, Editor, editor@newsandpress.net
Darlington City Council voted unanimously Tuesday Feb. 8 to approve the Economic Development Incentives Ordinance. Before the council meeting, there was a public hearing regarding the ordinance. No community member signed up to speak.
Darlington City Planner Lisa Chalian Rock told council that the incentives ordinance would give them a more competitive playing field when it comes to bringing new businesses into the area.
“This economic incentives package is going to give us the tools to try and attract some businesses to our town,” Rock said. “The first question people ask, when businesses call they say ‘What can you give me?’ and right now we don’t have a lot to offer but this program will serve that purpose.”
Rock said that business licenses would still be required for contractors but that eligible businesses could recoup some of the money put up to start or relocate their business.
Some of the incentives offered in the package include:
Building Permit Fees:
• Discount of 50 percent of permit fees for 50 full-time jobs or $500,000 investment in initial construction period
• Discount of 100 percent of permit fees for 100 full-time jobs or $1,000,000 investment in initial construction period
Hospitality Taxes:
• Discount of 50 percent of taxes collected if creating 20 for more full-time jobs for a period of one year
• Discount of 50 percent of taxes collected if creating 100 or more full-time jobs for a period of three years
Discounts would also be available on business license fees and hospitality taxes. In order to be eligible for any of these incentives, businesses must be located in the Core Commercial, Light Commercial, General Commercial or Industrial Zoning districts.
Rock told council that restrictions were written into the ordinance, stopping businesses from taking advantage of the incentives and not fulfilling their end of the deal.
“To protect our interests in the city, these are going to be reimbursement incentives that would be applied for annually,” Rock said. “If they are not applied for by the deadline, July 31st of each year, the incentive is forfeit. In that annual report they are going to give us proof of those jobs or proof of the investment, as well as proof of residency if that is something that they use to get the incentives. They are not going to get any incentives until they have a certificate of occupancy and they have a business license.”
The intention is to get new businesses that stay and invest in the community long-term, Rock said, not just someone who comes for the incentives.
“We are also putting in there a sort of claw-back provision so that (if) within five years of getting the money they lay-off half of the people we can get some of that money back,” Rock said. “The reason we put this in there is that other municipalities have had the issue where a businesses locates to get the incentives and after three years when the incentives are gone they move; this is a deterrent for that.”
Council will have the final say each time a business seeks to benefit from an incentive package. They will have to vote on the specific package being offered and can adjust it accordingly.
“Should there be something specific a business needs, whether it is a sidewalk or a street repair or something other than they need a business license, this gives you that latitude to fit the business that is approaching us,” Rock said.
The incentives will be available for new businesses but current businesses looking to expand are also welcome to apply for them.
Time Change
In other business, council gave final approval to an ordinance changing the start time of the monthly meeting. Beginning in March, council meetings will begin at 6:30 p.m.